Search form

In May 2018, Vistra acquired Radius, making it the number one international expansion services provider in the US. Vistra International Expansion now has more than 1,300 experts working in more than 40 jurisdictions to help you explore new markets and reduce the risk and complexity of global operations. Visit our new website.

Why Global Employers Should Promote Mental Health

Share

Employers have long realized the benefits of helping workers stay physically healthy, but many have been reluctant to venture into the less understood, often stigmatized realm of mental health issues.

Today, that attitude is starting to change as companies realize the extent of the problem and the toll it takes on productivity and business continuity. A recent study by the World Health Organization (WHO) found that depression and anxiety (the most common psychological problems) cost the global economy a staggering $1 trillion per year. If organizations take effective actions to promote mental health in the workplace, they can alleviate suffering and improve operations in the process, the study said.

A Worldwide Productivity Drain

Nearly half the population is affected by mental illness at some point in their lives, according to WHO. Some 300 million suffer from depression, often with bouts of anxiety. Work-related stress can exacerbate these symptoms, leading to absences and poor performance that impede companies from achieving their goals.

Study after study shows that across widely disparate cultures, mental health problems have similar debilitating effects. Here are a few examples.

European Union: A European Commission report found depression to be the most disabling problem, while anxiety was the most common. Women have higher rates of depression and anxiety than men, who are more likely to experience antisocial disorders and engage in substance abuse, the study said. At least two in five workers are living with a mental health problem at any given time.

Though few people suffer from severe conditions like schizophrenia, even minor levels of depression are associated with productivity losses, the study found. Sick leave and early retirement due to mental health problems have increased in Europe over the past few decades. Mental problems are also correlated with physical conditions, including cardiovascular problems and diabetes.

When employees take frequent leave or retire early, managers have to spend more on training and recruitment. In the meantime, other workers have to fill in, which could create further mental health issues resulting from workplace stress. The cost to employers is 240 billion euros ($272 billion) per year, including 136 billion euros for reduced productivity and including absenteeism and 104 billion euros for medical treatment.

European countries that have done their own studies have found similar results.

UK: In a recent study of more than 44,000 employees by mental health organization Mind, 48 percent said they have experienced a mental health problem in their current job. Only half had spoken to their employer about it, revealing a lingering stigma surrounding psychological illness. A 2010 study by the Centre for Mental Health said that losses due to work-related stress, depression or anxiety cost employers 105 billion pounds ($136 billion) a year.

Spain: Workplace stress can cause mental health problems, as well as exacerbating them for those with an existing condition. A 2010 workers’ union study in Spain (cited in the EU Commission report) estimated that up to 27 percent of mental disorders in the country could be attributed to working conditions and cost employers between 150 million euros and 372 million euros ($170 million to $422 million) a year. Nearly 18,000 deaths in 2010 were related to mental health problems.

France and Germany: A similar study in France found that just one aspect of workplace stress costs employers at least two to three billion euros, including healthcare expenditures, absenteeism, retirement and premature deaths. In Germany, mental-health-related job strain costs employers 29.2 billion euros ($33 billion) annually, another study found.

Sweden: For both men and women, mental health issues are on the rise and now the most common cause of illness-related absences, one study found.

Singapore: A recent government study paints a bleak picture of workplace life, finding the mental wellbeing of working adults to be 13 percent lower than that of the general population. Another survey found that one in six working adults experiences a high level of stress, compared to one in 10 for non-working adults.

Australia: A PwC report found that mental health issues cost employers $11 billion per year, including $4.7 billion in absenteeism, $6.1 billion in diminished performance, and $14 6 million in compensation claims.

Addressing the Problem

Organizations that promote mental health in the workplace receive a return on their investment, the European Commission report said. One study found that companies gain up to 13.62 euros for every euro of expenditure. A German study found that mental health promotion reduced absenteeism rates, lowering costs by 12 to 36 percent. A UK study said that a 1,000-worker company could save $473,000 annually by addressing stress and mental health issues.

So what do successful programs look like? They are embraced by senior leaders, which reduces stigma. They emphasize early interventions and make sure mental health problems are covered by insurance. Some offer employee assistance programs with confidential help lines available 24/7. Health risk screening, individual help and a supportive workplace culture help prevent problems from developing into a stressful and productivity-sapping crisis.

As individual employers address mental health problems, some countries have adopted broader initiatives to promote mental health. The UK has launched a Mental Health at Work project to support businesses in taking the first practical steps to promote positive mental health in the workplace. Canada has created Healthy Minds@Work, a network of resources to support employer efforts to address psychological health and safety. Singapore is also launching an initiative to help employers improve mental health in the workplace.

State support is helpful where it exists, but in most countries, it’s up to companies to take the first steps toward improving the mental health on the job. Developing a strong support system for employees experiencing mental health issues and promoting a positive psychological environment will create a stronger, happier and more productive workforce that ultimately improves the bottom line.

Join hundreds of global business leaders who receive weekly international expansion updates and need-to-know global information.

All types

When a company is considering international expansion, there are a number of details to consider: what type of entity to set up, how to hire employees, what taxes need to be filed, etc. Though the details may vary depending on country and company specific circumstances, there are three common mistakes that businesses headed overseas make that can be easily avoided.

The UK electorate has spoken, and after a transition period Britain will leave the European Union. Politicians on both sides of the channel must now not only start to develop new policies, they must also set a reasonable tone amidst Brexit-related passions. UK and EU business leaders must similarly manage change in their respective organizations during this uncertain period.

As a region with a long industrial history, Europe has a complex fabric of entrenched worker rights conveyed through trade unions, works councils, employee delegates and collective bargaining agreements. To better understand the overall situation, let’s take a look at each item in turn.